Winmar Resources eyes acquisition of Hamersley iron project.

THE BOURSE WHISPERER: Iron ore hopeful Winmar Resources has executed a variation agreement with Cazaly Iron, a wholly owned subsidiary of Cazaly Resources, to vary the Farm-in Heads of Agreement the companies had entered into in October 2010.

Winmar currently holds an entitlement to earn into a 51% interest of the Hamersley iron project and has an exclusive option to acquire the remaining 49% from Cazaly Iron.

Under the new variation agreement, Cazaly Iron has agreed to grant Winmar an option to acquire an immediate 100% interest in the tenements, which were the subject of the Farm-in Heads of Agreement for an exercise price of $35 million and the grant of a royalty.

Once that option has been exercised, Winmar will have a 100% ownership interest in the Hamersley iron project in the Pilbara Region of Western Australia.

Winmar has been busy with the company also executing an engagement letter with Miller Mathis, the steel, metals and mining division of Rodman & Renshaw.

The New York based investment bank has been given the task of obtaining a strategic investor or partner for the Hamersley iron project.

The Hamersley iron project is located in the East Pilbara iron ore precinct, immediately south of Fortescue Metals Group’s Solomon project, and close to Rio Tinto’s 28 million tonnes per annum capacity Mt Tom Price and 15Mtpa capacity Marandoo projects.

Hamersley has a current JORC Inferred Resource of 143 million tonnes at 52.6% iron, and an exploration target of 250Mt-300Mt at 55-59% calcium iron.

Recently announced results from further drilling include; 44m at 57.9% iron (60.8% calcium iron) and 36m at 58.9% iron (61.9% calcium iron).

Winmar has indicated it aims to confirm a resource upgrade during the current quarter.

In light of the early success achieved, Winmar management is eager to acquire 100% of the Hamersley iron project as soon as practicable.

The grant of the option is subject to the parties obtaining a written opinion from ASX that approval will not be required under Listing Rule 10.1.